Tip from the Geek 11/24–12/01/2014: And The Rally Rolls On
Top 5 Weekly Binary Options Trading Signals by the Geek
It’s still too early to call it the Santa Rally but I can call this a holiday rally, at least in the US. This week is the Thanksgiving Holiday which means we have a shortened trading week. US markets will be closed Thursday and Friday so trading in other parts of the world may be muted as well. Coming into the week the market is rising on positive economic data, earnings growth and great expectations for the holiday season. The SPX, DJI, DJT and COMP all set new highs last week and are indicated to go higher. This will also be a pretty big week for economic data. There are dozens of reports due out, all compressed into two days because of the holiday. Top of the list it the US 3rd quarter GDP estimate which I think will be stronger than expected.
There are of course multiple international events impacting the market as well. Surprise moves in China, Japan and Europe have currency markets swooning and equities supported on the hope free and easy money around the world. China’s People’s Bank of China made a surprise rate cut last week, totally surprising as there was no chatter such a move was even possible. On top of that there are now reports China could enact some QE of it’s own. Japan also stunned the market when seriously weaker than expected GDP numbers caused a near immediate halt to an upcoming usage tax hike and fueling speculation of Abenomics 2.0. On top of all that, comments from Mario Draghi helped to inflate expectations of more help from the ECB.
1. Riding A Wave Of Goodness
S&P 500
Call/Put = Call
Entry = Below 2065
Expiration = 3 Days
My Trading Advice
I am trading a very short term call this week, three days, because of the holiday. My longer term analysis and expectations for the market continue to be very bullish and are only getting more so by the day. The trends in economic are up, and by accounts I have read gaining momentum. Earnings growth is still strong with an average over 7.9% for the SPX, going into the strong holiday season. Technical trends are also up, which is really why I am trading so short. The back drop of earnings and economics are causing the technical picture to be what it is and what it is to me is bullish.
The SPX is drifting higher on weakly bullish momentum. This is key because the index is drifting higher on weak momentum. In a strong uptrend a decline in indicators that is not accompanied by a peak in prices is considered to by a positive divergence. Divergence is great for locating tops, and also good for locating stregth. Additionally, MACD is rolling over into another bullish signal and stochastic remains high in its range. The trade, a three day call with a target entry below 2065. I expect Wednesday could be a big day when all that data is released.
2. Germany Bounces
DAX
Call/Put = Call
Entry = Below 9800
Expiration = One Week
My Trading Advice
Germany, and EU markets in general, are bouncing on ECB expectations and signs of global strength. From their point of view both the US and China are still growing strong and are helping to aid German industry. In terms of the ECB Mario Draghi’s continued rhetoric of being ready to help when needed is adding lift. This week I am back into the DAX, trading a call with a target entry below 9800 and one week until expiry.
3. The Yen Sled
USD/JPY
Call/Put = Call
Entry = Below 118.25
Expiry = One Week
My Trading Advice
The yen lost a lot of ground over the past few weeks and that is not expected to stop. The currency is being impacted by weaker than expected growth, the impact of one tax hike earlier this year, expectations of QE/Abenomics 2.0 and a strong US economy. The pair is is trading above 118.00 on strong indications of further advance. I am trading a call with a target entry below 118.25 and one week until expiry.
4. The Oil Dance
USO/Oil ETF
Call/Put = Call
Entry = Below $28
Expiration = One Week
My Trading Advice
Oil prices have been dancing around for the past few months as global supply, the shale oil boom, demand expectations and wishy washy activity from OPEC have pressured prices lower. Now oil is at long term low on incredibly divergent indicators and looking like it is at a bottom….right before the OPEC meeting. The meeting, in which OPEC sets prices and production levels for next year, is highly expected to produce a cut but there is no guarantee of that as OPEC also appears to be deeply divided on what to do in the face of low oil prices. I am going with the technicals, which happen to be showing a buy signal and in line with my view of a bottom. I am trading a call with a target entry below $28 and one week until expiry.
5. An Apple For Christmas?
Apple
Call/Put = Call
Entry = Below $117.50
Expiry = One Week
My Trading Advice
Apple is trending higher because it is Apple. They have iPads,iPhones, Macs and many many other products, including Pay, which is a cash cow. Not to mention that it is much cheaper after the split and attracting new buyers all the time. The technicals are bullish with MACD beginning a new peak and stochastic making a nice bullish crossover in the upper signal zone. I am trading a call on Apple with one week until expiry and a target entry below $117.50.
More Tips by the Geek – 11/24-12/01/2014 Trading Tips On Forum.
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That’s it for this week; Michael will be here next week with fresh trading tips. Meanwhile, we will be testing Michael’s tips to see what kind of an “expert” he really is. All trading assets and expiry times featured in Michael’s trading tips are based on CommuniTraders Binary Options Trading Platform.
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